Retail Sales Daniela Leal Andrea Morales AP Macroeconomics
Retail Sales: • Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser. • It’s data is essential since it provides valuable information about consumer spending.
HighlightsFor July 2008 compared with June 2008 • Total retail sales fell 0.8 %($44 million) • Motor vehicle retailing sales fell 5.3% ($32 million)
ANNUAL RETAIL SALES SINCE 1999 • Retail sales reports are indicators that are easy to understand and relate to the average consumer. • They are a big component of GDP in the U.S. • Any extended drop-offs in retail spending can trigger a recession by forcing companies to reduce prices and lowering tax-receipts.
Using Consumer Spending As A Market Indicator • Using various individual retail sales figures is one of the best indicators available to predict the next five to nine months of retail economic activity. • Retail sales are the backbone of our economy. • The Retail Sales Data measures the amount of goods being sold each month in the United States. • Is a measurement of the health of the general economy.
The Importance of Selling • Creates a better standard of living for everybody. • Creates jobs • Reduces unemployment • Keeps prices low • Creates satisfaction